Established pesticide company Jiangshan shares acquired Fuhua Tongda

Nantong Jiangshan Pesticide Chemical Co.
, Ltd.
(hereinafter referred to as "Jiangshan Co.
, Ltd.
", 600389), one of the long-established key pesticide companies in China, officially disclosed in the latest announcement that it will acquire the company's second largest shareholder's affiliated company in Leshan City, Sichuan Province.
Huatongda Pesticide Technology Co.
, Ltd.
(hereinafter referred to as "Fuhua Tongda") will make Jiangshan shares the world's second largest supplier of glyphosate after Bayer
.
Prior to the evening of March 29, Jiangshan shares announced that it plans to reorganize and acquire all the shares of Fuhua Tongda, and the company will suspend trading on March 29
.
Jiangshan shares stated in the announcement at that time that the reorganization was to resolve the company's second largest shareholder, Sichuan Leshan City Fuhua Crop Protection Technology Investment Co.
, Ltd.
(hereinafter referred to as "Fuhua Crop") affiliated company Fuhua Tongda and the listed company.
Competition issues, further optimize the industrial layout of listed companies, and expand and strengthen the main business of listed companies
.
Glyphosate is one of the most widely used herbicides in the world and is widely used in agricultural production and weeding in orchards
.
According to data, in 2019, the global glyphosate production capacity was approximately 1.
1 million tons, with a total of about 10 production companies.
Among them, the American Monsanto, which was acquired by Bayer, has approximately 380,000 tons, and the remaining capacity is mainly concentrated in China
.
On the evening of April 12, Jiangshan Co.
, Ltd.
issued an announcement stating that the company plans to purchase 100% equity of Fuhua Tongda by issuing shares and paying cash.
This transaction constitutes a reorganization and listing
.
After the transaction is completed, the actual controller of the listed company will be changed from no actual controller to Mr.
Zhang Hua and Ms.
Lei Wang; before and after the transaction, the control of the listed company has changed
.
The company's shares will resume trading on April 13
.
On April 13, the company's stock price closed at 20.
68 yuan, down 5.
35%
.
The transaction plan shows that Jiangshan Co.
, Ltd.
intends to purchase Fuhua Group, Jiafeng International, Agricultural Development Fund, Zhenxing Investment, Tianyuan Chemical, Youle Investment, Zheshang Industry Finance, Tongdaxin Investment, Tongdaxin and Investment by issuing shares and paying cash.
, Inner Mongolia Flight, Jinzeli Investment, Danzheng Freight Forwarding, Huachenxin Technology, Cloud Technology, Centennial Fuhua, Qingzaichao, Yinxinda Investment, and Wang Xueping hold 100% of Fuhua Tongda
.
After the completion of this transaction, it will hold 100% equity of Fuhua Tongda
.
In this transaction, Jiangshan Co.
, Ltd.
intends to use the inquiry method to raise supporting funds from a total of 35 qualified targets for non-public issuance of stocks, and the number of shares to be issued shall not exceed 30% of the total share capital before the issuance.
The total amount does not exceed 100% of the transaction price of the purchase of assets by issuing shares in this transaction
.
The transaction plan stated that after negotiation by the parties to the transaction and fully considering the interests of all parties, the issuance price is 19.
27 yuan per share, which is not less than 90% of the average stock price of the listed company on the 20 trading days before the pricing base date, in compliance with the "Restructuring Measures" Relevant regulations
.
To raise funds to be used for a cash transaction of payment of the price paid in this transaction taxes and agency fees to supplement working capital and so on
.
However, the issuance of shares and the payment of cash to purchase assets are not based on the successful implementation of the matching funds raised, and the success of the matching funds does not affect the performance and implementation of the issuance of shares and the payment of cash to purchase assets
.
It is worth noting that Fuhua Tongda and Jiangshan are both giants in the domestic glyphosate industry
.
Prior to November 2018, Fuhua Crop invested 1.
803 billion yuan in cash and held 29.
19% of Jiangshan shares, becoming the second largest shareholder of Jiangshan shares, which attracted great attention in the industry at that time
.
Fuhua Tongda is mainly engaged in herbicides (the main varieties are glyphosate and glufosinate) and its supporting intermediates phosphorus trichloride, dimethyl phosphite, formaldehyde, paraformaldehyde, chloroacetic acid, glycine, hydrogen peroxide, chlor-alkali, As well as the development, production and sales of products such as cogeneration steam
.
According to the official website of Fuhua Agricultural Science, Fuhua Tongda is one of the top 20 agrochemical companies in the world, the top 100 enterprises in Sichuan and the top 500 chemical companies in China
.
Fuhua Tongda has formed a manufacturing base covering the entire industrial chain of glyphosate recycling
.
In terms of the domestic glyphosate market, Jiangshan and Fuhua Tongda are both giants in the glyphosate industry and also large exporters of glyphosate, with huge overseas markets
.
Among them, Fuhua Tongda's production capacity is 153,000 tons/year, and Jiangshan's glyphosate production capacity is about 70,000 tons/year. .
Jiangshan shares said that through this transaction, the resources of the east and west can be integrated, and the industrial layout and regional development layout can be adjusted
.
After the completion of the asset acquisition, Jiangshan shares will have no less than 295,000 tons/year of pesticide technical production capacity, of which glyphosate technical production capacity will be 223,000 tons/year, taking the lead in the domestic glyphosate industry and occupying more than 20% of the world It will become the world’s second largest supplier of glyphosate after Bayer’s share of production capacity, and will gain a stronger voice in the global agrochemical market
.
Jiangshan shares also stated that after the integration, the company can focus on product optimization, rational layout, R&D investment, channel sharing, etc.
, to achieve all-round coordination and optimal allocation of resources, and improve competitiveness and market share.
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.